§ 20-101.1. Conspicuous disclosure of dealer administrative fees. - North Carolina Statutes

§ 20‑101.1.  Conspicuousdisclosure of dealer administrative fees.

(a)        A motor vehicledealer shall not charge an administrative, origination, documentary,procurement, or other similar administrative fee related to the sale or leaseof a motor vehicle, whether or not that fee relates to costs or charges thatthe dealer is required to pay to third parties or is attributable to thedealer's internal overhead or profit, unless the dealer complies with all ofthe following requirements:

(1)        The dealer shall posta conspicuous notice in the sales or finance area of the dealership measuringat least 24 inches on each side informing customers that a fee regulated bythis section may or will be charged and the amount of the fee.

(2)        The fact that thedealer charges a fee regulated by this section and the amount of the fee shallbe disclosed whenever the dealer engages in the price advertising of vehicles.

(3)        The amount of a feeregulated by this section shall be separately identified on the customer'sbuyer's order, purchase order, or bill of sale.

(b)        Nothing containedin this section or elsewhere under the law of this State shall be deemed toprohibit a dealer from, in the dealer's discretion, deciding not to charge anadministrative, origination, documentary, procurement, or other similaradministrative fee or reducing the amount of the fee in certain cases, as thedealer may deem appropriate.

(c)        Notwithstanding theterms of any contract, franchise, novation, or agreement, it shall be unlawfulfor any manufacturer, manufacturer branch, distributor, or distributor branchto prevent, attempt to prevent, prohibit, coerce, or attempt to coerce, any newmotor vehicle dealer located in this State from charging any administrative,origination, documentary, procurement, or other similar administrative feerelated to the sale or lease of a motor vehicle. It shall further be unlawfulfor any manufacturer, manufacturer branch, distributor, or distributor branch,notwithstanding the terms of any contract, franchise, novation, or agreement,to prevent or prohibit any new motor vehicle dealer in this State fromparticipating in any program relating to the sale of motor vehicles or reducethe amount of compensation to be paid to any dealer in this State, based uponthe dealer's willingness to refrain from charging or reduce the amount of anyadministrative, origination, documentary, procurement, or other similaradministrative fee related to the sale or lease of a motor vehicle. (2001‑487, s. 123.5;2001‑492, s. 1.)